Western GOM lease sale attracts $115 million in apparent high bids

Aug. 24, 2009
Apparent high bids totaling more than $115 million were offered for 162 tracts in the Western Gulf of Mexico during Lease Sale 210, reported the US Department of the Interior's Minerals Management Service Aug. 19 in New Orleans.

Apparent high bids totaling more than $115 million were offered for 162 tracts in the Western Gulf of Mexico during Lease Sale 210, reported the US Department of the Interior's Minerals Management Service Aug. 19 in New Orleans.

MMS received 189 bids totaling just over $145 million from 27 companies at the sale. This compares with 423 bids received totaling $607 million from 53 companies at the last western gulf sale (OGJ, Aug. 25, 2008, p. 30).

The ultradeep water was a big draw at the sale. Of the tracts receiving bids, 94 blocks were in 800-1,600 m of water, 10 were in 1,600-2,000 m of water, and 16 were in more than 2,000 m of water.

This latest sale offered 3,435 blocks covering more than 18 million acres in the western gulf's Outer Continental Shelf planning area off Texas.

Based on the number of total apparent high bids submitted, BP Exploration & Production Inc. topped the list with 37 bids totaling $50 million. Chevron USA Inc. placed the next highest amount of apparent high bids, 26, totaling $9 million.

ConocoPhillips Co. placed 22 total high bids totaling $15 million.

BP E&P placed the highest single bid for a block—$28.1 million for Keathley Canyon Block 96, which lies in more than 3,000 m of water.

The second and third highest single bids were placed by Petrobras America Inc. and BP E&P, respectively. Petrobras bid $9 million for Keathley Canyon Block 223 in 800-1,600 m of water. BP bid $5 million for Keathley Canyon Block 180 in 800-1,600 m of water.

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